Tea Tree Australian - Mar 21, 2012
As largely expected over the past 9 months the market has just about run dry of reasonable levels of stock due to the lingering impact of last year's floods and cyclones across the key growing areas. As you may recall from our previous reports the 2011 total yield was down around 35% on 2010. We anticipated that early in 2012 there would be a general market shortage until full harvesting resumes around June/July.
Working closely within our group of farming partners we have been fortunate in supplementing our own supply with a small harvest starting last month but once again larger than expected rains at this time of year have hampered efforts, causing more strain on the global supply in the short term.
As a consequence of any short term supply problem, prices have been the subject of some speculation with increases as large as 15% cited by some in the local marketplace. As abp are interested in longer term customer and supplier relationships, we are confident of being able to continue supplying the market over the next few months prior to our next harvest. We would strongly encourage customers to discuss their forward requirements with us before being influenced by any scaremongering that may go on in the next few weeks by other traders exploiting the situation.
As always we are looking after the interests of our customers, the farms we work with and the long term position of Australian Tea Tree.
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